ALTERNATIVE FUELS CORPORATION PTY LTD - PowerPoint Presentation

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ALTERNATIVE FUELS CORPORATION PTY LTDAFC YEAST

PRESENTATION TO FOOD VISION ASIAAPRIL 2016INNOVATIVE, SUSTAINABLE AND AFFORDABLE Slide2

AFC YEASTDRIED, INACTIVEINNOVATIVE, SUSTAINABLE AND AFFORDABLE

 AFC YEAST is a selected strain of Saccharomyces cerevisiae, a “GRAS” (Generally Regarded as Safe) yeast, and approved as an acceptable human food ingredient under the provisions of the USFDA Regulations.It is a vegetable yeast, thus suitable for vegetarians and vegans.It is grown under continuous aseptic fermentation conditions.Can be grown on almost all sugar and starch derived feedstocks.It can be grown virtually globally in very large volumes.The AFC process enables the yeast to be grown very cost effectively, thus becoming readily available for protein applications at very competitive pricingIt can be used in a wide variety of foods in many food-related industries.The process is patented in Australia, USA and Canada, and has patent applications pending in India, Europe, Brazil and Japan.PRODUCTS CAN BE STRUCTURED FOR THE SPORTING TYPES, FOR FAMILIES AND MOST IMPORTANTLY TO ADDRESS GLOBAL MALNUTRITIONSlide3

AFC YEASTNUTRITIONAL VALUES, ALLERGENICITY, FOOD STATUS  NUTRITIONAL VALUESProtein 45-55%

Substantially essential minerals and B Group vitamins.Carbohydrate/dietary fibre 20-25% Glutathione, a potent antioxidant, said to have a role in cancer prevention.Ash 7%Cell walls 20% including polysaccharide Beta Glucans and mannans with immune stimulant and/or fat substitute characteristics.Nucleotides 8-10%, important in human infant nutrition, now being recognised as important in in animal feed; and including the molecule NMN, separately being trialed in US universities as a cure for type 2 diabetes, and for the retarding of the aging process ALLERGENICITYNOT classified as a known allergen. FOOD STATUSHalal compliantKosher compliantFUNCTIONAL PROPERTIES

NOT genetically modified

Resemblance to milk proteins

Emulsification, water and fat binding abilities.

90-100% of yeast can be used as functionally-active food ingredients (no residual fibrous material remaining)

Does not contain

Phytates

(digestive problem) or

isoflavones

(hormone problem).Slide4

AFC YEASTCOMPARISON OF THE 9 ESSENTIAL AMINO AIDSIN AFC YEAST AND DEFATTED SOY FLOURESSENTIAL AMINO ACID

AFC YEAST DEFATTED SOY FLOUR g/100g g/100g  Histidine 1.1 1.31 Isoleucine (attributed to healing) 5.7 2.40 Leucine 3.8 4.06 Lysine 2.4 3.14

Methionine 0.4 0.61

Phenylalanine 2.6 2.56

Threonine 2.8 1.88

Tryptophan 0.6 0.63

Valine

2.8

2.51

22.2

19.10Slide5

AFC YEASTNUCLEOTIDES, SAID TO BE THE NEXT REVOLUTIONIN ANIMAL FEEDING TECHNOLOGY

SEE THE FOLLOWING QUOTES:“Nucleotide formulations for livestock feed can deliver strong feed efficiency, growth promotion and health benefits, particularly for young animals”“Nucleotides represent tremendous potential to enhance the profitability of livestock operations and are in accordance with today’s industry and regulatory environments”“This profitability is demonstrable in three ways:feed efficiency, livestock get more out of the feed;productivity-livestock have higher feed intakes and higher average daily gains; andhealth-nucleotides help livestock to stay robust and at a high level of development, the animals being less susceptible to sickness and disease”“The potential in nucleotides is one of the best things to come around for livestock feeding in decades” Note: a short while ago the NMN molecule in nucleotides was selling at around US$1600 per gram.Slide6

AFC YEASTDEVELOPED HUMAN FOOD PRODUCTSPROTEIN BAR/BALL/CHEW/CONFECTIONINCLUDES 7g PROTEIN; 0.4g VITAMINS; 0.35g FAT; 0.01g SUGAR; 3.15g CARBOHYDRATES

; 1g NUCLEOTIDESBASED ON INDIAN COSTS, EACH CAN BE PRODUCED AND SOLD FOR A MAXIMUM OF US$0.408. HIGHER PROTEIN LEVELS EASILY ACHIEVED.TO COMPARE WITH PROTEIN BARS/BALLS CURRENTLY MARKETED IN INDIA, 3 AFC PRODUCTS WOULD BE REQUIRED DAILY. DAILY COST US$1.23CURRENT COMPARABLE PRODUCTS RETAIL AT AROUND US$2.10 THE AFC PRODUCT CAN BE SOLD IN A RANGE OF FLAVOURS AND APPLICABLE COLOURSIT COULD ALSO BE SOLD IN BULK PACKAGES IN VARIOUS WEIGHTS FOR HOME OR SCHOOL GROUPS WITH DIRECTIONS FOR MIXING THE POWDER WITH WATER.REFRIGERATION IS NOT NORMALLY REQUIRED, AND HAS A GOOD SHELF LIFE. THE BULK PRODUCT WOULD BE EVEN LESS COSTLY THAN THE “READY TO EAT” PRODUCT.EGG SUBSTITUTETHE AFC YEAST PRODUCT IS ABLE TO COMPLETELY SUBSTITUTE FOR THE REQUIRED NUMBER OF EGGS IN BAKED GOODS SUCH AS BISCUITS, CAKES, MUFFINS, AND DONUTS. THIS IS PARTICULARLY APPLICABLE WHERE EGGS CANNOT BE EATEN, BE IT FOR HEALTH OR RELIGIOUS REASONS.THE COST OF THE EGG SUBSTITUTE IS APPROX US$0.01 LESS THAN THE EGG, AND THE COMPARABLE COST OF PROTEIN IN AFC YEAST IS LESS THAN THAT OF THE EGG PROTEIN.MILK EXTENDERMILK AVAILABILITY CAN BE EXTENDED BY APPROX 33% BY THE AFC PRODUCT WHILE STILL MAINTAINING THE CONSTITUENT PERCENTAGES, THE YEAST IS HELD IN SOLUTION AND THERE IS NO SETTLEMENT. THE PRESENCE OF THE NUCLEOTIDES IS AN EXTRA ADVANTAGE. THERE IS LITTLE OR NO COST DIFFERENCE.Slide7

AFC YEASTPRODUCTS WITH APPEAL TO BE DEVELOPED 80% PROTEIN CONCENTRATECan be developed by separating out percentages of the cell walls and nucleotides.The cell walls and nucleotides each attract good prices on world markets.

After credit for the sales above, the concentrate can be produced at a cost lower than those of soy and whey currently on the market.Good for sports and health drinks and supplements. TEXTURED VEGETABLE PROTEIN PRODUCTSA range of meat substitute products could be developed.These could include mince, sausage, savoury type sausage, meat pies, hamburgers.Much development already completed and patented (now expired but readily available).Could compete with a number of soy-based products. OTHERSDairy items such as ice cream, yoghurtMayonnaisesNoodlesSlide8

THE AFC PATENTED PROCESSThe process is designed to use an existing (or new) ethanol plant’s infrastructure with some comparatively inexpensive capital additions which has a significant effect on reducing cost of production of the yeast. It also significantly increases the profitability of the ethanol plant by a factor of up to 5 times currently being experienced. The yeast inoculum is introduced into a new aerobic fermenter containing the prescribed volume of feedstock and a selected mix of nutrients and mineral salts.

The yeast is grown under aseptic conditions in continuous mode and could continue for months at a time.Yeast is grown at about 7 times faster than standard batch procedures.A much greater than standard volume of yeast is transferred into the ethanol batch fermenters, so that ethanol is fermented in 7-10 hours, approx. 25-50% of normal times.Because of the short time in the ethanol fermenter, the yeast cells have not been broken, and the yeast maintains its full integrity.Prior to distillation the yeast is centrifuged off, washed and dried.NOTE that not one ounce of the feedstock used to produce the yeast has been depleted into the ethanol production.Slide9

INDICATIVE FIGURES FROM A STANDARD ETHANOL PLANTBEFORE AND AFTER THE ADAPTATION OF THE AFC PROCESS(based on Indian costs and prices) (monetary values in US$)(standard plant producing 30 million liters ethanol/alcohol and with AFC technology 50 million

liters and 10,000 metric tons of yeast) STANDARD WITH AFCSale ethanol 30 million liters 18,000,000 50 million liters 30,000,000 Sale stillage 3,050,000

21,350,000 30,000,000

Cost of production

17,500,000

22,500,000

PROFIT on ethanol

4,000,000

7,500,000

Sale of

Yeast

10,000,000

kgs

28,000,000

Cost of production

14,000,000

PROFIT on yeast

14,000,000

PROFIT per annum

4,000,000

21,500,000

NOTE.

The sale of yeast has been set at US$2.80/kg, being the going price in India of “animal feed additive” as the AFC yeast would qualify.

But for the costing of the AFC yeast in developed food products, the yeast has been included at from $3.50/kg to $5/kg, considerably increasing the profit from the complete transaction.Slide10

POSSIBLE MARKET SIZES FOR DEVELOPED PRODUCTS IN INDIAPROTEIN CONFECTIONERY ITEMS1 plant producing 10,000 metric tons yeast per annum could produce 1.25 billion products containing 8g yeast which would feed 1.7 million children 2 items per day for 365 days/year.Note that there are approx. 130 million children in the school midday lunch program receiving approx. 12g protein per day for 300 days.

Also note that as recently reported there are 16 million children that are homelessAnd on top of all of that are the growing middle class with expendable incomes many of whom are now buying health products including protein barsEGG SUBSTITUTEApproximately 60% of the Indian population are Hindus amounting to 720 million, many of whom do not eat eggsShould just one third of those, 240 million have the equivalent of 1 egg per month in the form of AFC egg substitute, 40,000 metric tons of yeast would need to be produced.MILK EXTENDER1 plant producing 10,000 metric tons yeast per year could extend milk availability in India by approx. 125 million liters annually. Slide11

AFC YEASTOTHER MARKETS OTHER PRODUCTSAFC believes there are many more products that can be developed taking advantage of the low cost highly proteinaceous yeast. Some of these are listed earlier.

 GEOGRAPHICALThese pages have concentrated the attention on India. That is where AFC has spent the time developing the cost structures, recipes, formulae. And India’s population is rapidly increasing, the middle class has more expendable income, but still the problem of malnutrition remains.We are hearing that malnutrition is also becoming a problem in developed nations.So the market opportunities to provide protein are indeed enormous,Apart from India, consider these regions:ChinaThe rest of Asia including Pakistan, Bangladesh, North and South Korea and the other former Russian territories.South East Asia – the ASEAN countriesAfricaSouth AmericaSlide12

ALTERNATIVE FUELS CORPORATION PTY LTDAFC YEASTCORPORATE AND CONTACT DETAILS 

ALTERNATIVE FUELS CORPORATION PTY LTDALSO TRADING AS AFC YEASTABN 69 116 895231REGISTERED OFFICE: C/- CHAPMAN EASTWAY 15TH FLOOR, 8 HUNTER STREET SYDNEY NSW 2000 AUSTRALIAADMINISTRATIVE OFFICE: 4/21 EXCELSIOR PARADE CAREY BAY, NSW 2283, AUSTRALIACONTACT: DON MCLELLAN, CHAIRMANPHONE: +61 403845520EMAIL: don@afcyeast.comWEB: www.afcyeast.com